This subsidy is for Urban poor in EWS (economically weaker sections) whose total income along with family income does not exceed Rs. 3 lakhs and for LIG (Lower Income Group) people with income (including family’s income) ranging from 3 lakh to 6 lakh per annum.

If the family owns any other house then it would not be eligible for subsidy on loan for 2nd house.

Subsidy of 6.5% on interest on home loan would be available. If a person eligible as per above discussed conditions takes a home loan of 10 lakhs @ 9.5% :-

Then situation will be as follows:-

Full rate of interest = 9.5%

Subsidy on interest = 6.5%

Rate of interest upto 6 lakh loan = 3.5%

Rate of interest on remaining 4 lakhs loan =9.5%

Loan tenure should not be more than 15 years.

Loan may be taken from any of the scheduled/ nationalized/private bank or housing loan companies etc.